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GoDaddy expiration policy fixes annoying clawbacks

Domain names can no longer be renewed or transferred after they are won at auction.

One of the biggest gripes about GoDaddy expired domain name auctions is that registrants can still renew or transfer their domains after an auction closes. Domain investors spend time bidding on domains only to have the domain pulled out from underneath them after winning and paying. Sure, they get the refund, but it was a waste of time. Some domainers complain that domain owners use the auction as a free domain appraisal before transferring the domain to another domain registrar.

Yesterday, GoDaddy sent a notice to Premier Services customers about a change in how domains expire.

First, the company will begin interrupting email services (MX records) in addition to web services five days after a domain expires. This should help alert the domain owner that his or her domain is expired and reduce the number of late renewals.

Second, customers will no longer be able to renew or transfer a domain after 30 days post expiration.

Expired domain name auctions currently end 36 days after a domain expires. So for domain names registered at GoDaddy that go through the expiry process, this means auctions you win should no longer be clawed back.

Technically, this means GoDaddy could eliminate the waiting period between winning a domain auction and receiving the domain name (for inventory registered at GoDaddy). This would be another welcome change: pay for the domain auction and the domain is yours.

I totally agree. I was given TWO WEEKS’ notice. It’s absolutely appalling that GoDaddy thinks two weeks’ notice on such a massive policy change is acceptable. It sends a message loud and clear that they do not care about their customers nor their customers’ success — they care ONLY about making money (including at the expense of their customers). Message received, GoDaddy! I’m going to start looking for another registrar because I don’t want to be subjected to another massive policy change on two weeks’ notice. This was in the works for a year, I’ve read, yet they only gave us two weeks’ notice: shameful! I can’t believe it’s legal to do that.

By the way, this change happened because they allowed auctions on expired domains to end AND they collected money from the bidders during the time period when the original owner could still renew it. They would have to refund the money when it was renewed, which people found annoying. A better solution would have been to start the auction when the original owner could no longer register it, but GoDaddy clearly profits from the vulture approach.

Any idea what percentage of the names listed are under GoDaddy TOS versus allowed to clawback under a Partner agreement?

From what I was told, Partner’s are not impacted by this change. Are we being asked to WhoIS every expired domain that we bid on to see if it’s a Partner TOS vs GoDaddy TOS? Who are the Partners who do not follow the GoDaddy TOS?